Pakistan News And Discussion-9

[Naresh]

<!--QuoteBegin-Mudy+Nov 29 2006, 03:28 AM-->QUOTE(Mudy @ Nov 29 2006, 03:28 AM)<!--QuoteEBegin--><b>Pakistan Bond Ratings Raised by Moody's on Lower Debt </b>

Nareshji,
This news in very interesting. Why this gift?
[right][snapback]61487[/snapback][/right]<!--QuoteEnd--><!--QuoteEEnd-->

Mudy Ji,

As I see it you could be referring to two types of gifts :

1. Moody’s upgrading of Pakistani Bonds : The lowering of Debt seems to be Shortcut Asis’ Creative Accounting – as the following figures from the State Bank of Pakistan tell a different Story :

<b>Pakistan's External Debt : USD BILLION</b>

<b>Total External Liabilities</b>

30/06/05 : 35,834

30/06/06 : 37,265

30/09/06 : 37,724

<b>DOMESTIC DEBT OUTSTANDING : PAKISTANI RUPEES BILLIONS</b>

<b>Total Internal Liabilities</b>

30-June-05 : 2,133.081

30-June-06 : 2,296.869

From the above, you will see that both the External as well as the Internal have increased and as such Moody’s premise possibly based upon Shortcut Asis’ Creative Accounting is a load of cobblers.

You will further note that the Permanent Debt has decreased by Pak Rs. 725 Million but the Floating Debt has increased by Pak. Rs. 162,070.7 Million and the Unfunded Dept has increased Pak. Rs. 2,442.5 Million i.e. the Total Internal Debt has increased by Pak Rs. 163,788.2 Million i.e. 163.7882 Billion.

Thus, <b>Who is fooling Who?</b> <!--emo&:flush--><img src='style_emoticons/<#EMO_DIR#>/Flush.gif' border='0' style='vertical-align:middle' alt='Flush.gif' /><!--endemo-->

2. If you are referring to the news <b>Pakistan plans to spend about $5.2 billion in five years to rehabilitate 3 million people left homeless and reconstruct cities destroyed by the Oct. 8, 2005, earthquake in the country's northern areas. The quake killed more than 73,000 people</b> then I can say :

Well as per usual Pakistani Jernails and other Leaders’ Record is “On Record” whereby hardly any of the funds received for previous Earthquakes-Floods-Other Calamities hardly reached the victims and in reality over 90% went to the Jernails and Other Leaders.

Cheers <!--emo&:beer--><img src='style_emoticons/<#EMO_DIR#>/cheers.gif' border='0' style='vertical-align:middle' alt='cheers.gif' /><!--endemo-->